Date of Award
Master of Science (MS)
Mathematics and Statistics
Dr. Daniel Coster
The sinking fund method is a way to repay a loan where the borrower pays the amount of interest accrued by the principal at the end of each time period and puts a certain amount in a sinking fund in order to repay the principal at the end of the loan. Usually, we assume that the interest rate on the sinking fund is the same during the entire time of the loan. In the study, we will depart from the usual assumptions and will look at different scenarios, including when changes of the interest rate on the sinking fund follows a normal distribution, a uniform distribution and ARIMA processes.
Gangnang Fosso, Placede Judicaelle, "Simulating Logan Repayment by the Sinking Fund Method (Sinking Fund Governed by a Sequence of Interest Rates)" (2012). All Graduate Plan B and other Reports. Paper 135.
Copyright for this work is retained by the student.